"We operate in a fast-changing world, and our company is moving forward decisively to build further on Macy's heritage as a preferred shopping destination for fashion, quality, value and convenience. This involves doing things differently and making tough decisions as we position ourselves to serve customers who have high expectations of their favorite stores, online sites and apps," Terry Lundgren, Macy's chairman and CEO, said in a release.

The company currently has 728 stores, 675 of which are full-line stores.

"We believe that this reduction of 100 locations in the short term will result in a more appropriate store portfolio for Macy's in the longer term and help us to accelerate our progress in building a vibrant omnichannel brand experience," Jeff Gennette, who will take over as CEO in the first quarter of 2017, said in the release.

Macy's shares jumped as much as 16% following the news.Macy's shares Google Finance